_____ Involves Making Direct Observations of the World,whereas _____ Involves

question 213

Multiple Choice

_____ involves making direct observations of the world,whereas _____ involves relying on assumptions and beliefs about the world.

• A)Methodology;empiricism
• B)Dogmatism;empiricism
• C)Empiricism;dogmatism
• D)Empiricism;methodology

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Definitions:

Pretax Income

The total earnings of a company before taxes have been deducted, also known as earnings before tax (EBT).

LIFO Method

"Last In, First Out" method; an inventory strategy where the most recently produced items are sold first, leaving older inventory in stock.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First-In, First-Out."

Inventory Valuation

Inventory valuation is the cost associated with an entity's inventory at the end of a reporting period, affecting the cost of goods sold and the inventory balance on the balance sheet.